Telson Mining Corporation is a Canadian-based junior resource company with
two Mexican gold, silver and base metal mining projects.
Telson's Tahuehueto project located in Durango, Mexico is currently in
pre-production at approximately 200 tonnes per day utilizing a toll mill for
processing and has entered a construction phase with a timeline to be
producing on site in its own mineral processing plant capable of milling at
least 1,000 tpd in 2020.Telson's 100% owned Campo Morado mine located in Guerrero, Mexico was
placed into care and maintenance in August 2019 due to a number of factors
including the substantial decline in zinc prices which negatively affect the
mine's profitability. With improving conditions Telson brought the mine out of care and
maintenance and reinitiated mining and milling operations during January
2020.

Tahuehueto, Northwestern Durango State

Telson Mining Corporation controls 100% of the Tahuehueto Project through a
99%-owned subsidiary, and acquired the district-scale property for its
potential to host multiple deposits and discoveries. The project lies within
the Sierra Madre mineral belt, which hosts most of Mexico’s producing mines
and active exploration and development projects, and has geological
similarities to epithermal deposits being exploited in nearby mining
districts. In addition to vast geological potential, Mexico offers the
advantages of social and political stability and a favorable investment
climate. Pre-production commenced at Tahuehueto in August 2017 and is
currently mining at a rate averaging 200 tonnes per day, shipping ore to a
third-party toll mill for processing. Management has a targeted timeline at
Tahuehueto to be producing with its own on-site mineral processing plant, with
a designed capacity of at least 1,000 tonnes per day in 2020.

This 7,492-hectare property covers at least 12 mineralized zones hosted within
a structurally controlled epithermal system that has been traced for more than
6 km. Exploration programs have defined significant gold-silver and base metal
reserves and resources along the explored structural zone. Mineralization of
gold, silver, copper, lead, and zinc has been outlined within reserves and
resources along the length of the explored structural zone which have allowed
Telson to determine excellent economics of a potential mining operation at
Tahuehueto.

Significant exploration upside potential exists both on the existing explored
structures that contain current reserves and resources along strike and down
dip of the known mineralization which is open in all directions as well as
within numerous other mineralized but unexplored structures known to occur
within the core 700 ha concession area. Further exploration potential exists
outside of the core area where Telson controls an additional 6700 hectares of
concessions. Telson’s concessions cover about 80% of the mineralized
Tahuehueto District, and there is a significant amount of prospective ground
within this government recognized geological Tahuehueto District.

Telson’s plan is to advance into production with the reserves outlined in the
core 500 ha area, continue to expand the reserves on structures where there
are defined reserves and resources, and start to look at our less explored
structures within this core 500 ha area. A Greenfields type of exploration
program will also be designed and implemented after production is achieved to
explore the regional District potential within Telson’s concession area.

Campo Morado, Guerrero State

Campo Morado is an underground multi-metal mine with infrastructure,
installations and equipment capable of processing 2,500 tonnes of ore per day.
There are over 700 exploration diamond drill holes in place which have
outlined six mineralized bodies containing approximately 16.6 million tons of
measured and indicated resources grading 4.01% zinc, 0.80% copper, 0.93% lead,
123 g/t Ag and 1.70 g/t Au plus, an additional 1 million tons of inferred
mineral resources as calculated and released by Titley Consulting Ltd. in
November 2017.
The Campo Morado Mine was commissioned and commenced operations in 2009 by
Farallon Resources. Nyrstar purchased Farallon Resources in a friendly
takeover in 2010 for the equivalent of approximately C$420 million thereby
gaining control of Campo Morado. Nyrstar produced up to the end of 2014 when
mining operations were suspended in January 2015 and the mine was placed on
care and maintenance due to deteriorating industry conditions. During 2014,
the mine processed 657,000 tons of ore with an average grade of 1.2g/t Au,
115.7 g/t Ag, 4.6% Zn, 1.2% Cu and 0.9% Pb. The concentrates produced in the
same year were 48,000 tons of Zn concentrate at 47% Zn and 29,000 tons of Cu
concentrate at 13%, including 6,000 oz of Au and 0.9 million oz of Ag.

On
April 27, 2017
Telson signed an agreement with Nyrstar to acquire 100% of the Campo Morado
mine. On
September 18, 2017, Telson announced that it had secured the funding required to initiate the
restart of continuous mining operations at the Campo Morado Mine and on
October 23, 2017
the Company announced the restart of full scale mining and mill processing on
a pre-production basis from mine development at a starting rate of 1,400
tonnes per day. On
May 23, 2017
the Company was pleased to announce the start of commercial production with
the aim of increasing throughput at the mill to its 2,500 tonne per day
capacity.

On August 14, 2019 management made the decision to place the mine into care
and maintenance. A number of factors were taken into account including
the substantial decline in zinc prices with negatively affect the mine's
profitability. With improving conditions Telson brought the mine out of care and maintenance and reinitiated mining and milling operations during January 2020.

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